The dispute between Telegram and the U.S. Securities and Exchange Commission (SEC) is coming to a detailed as the ultimate judgment has been filed. Telegram has been ordered to pay again $1.2 billion. The firm should additionally pay the SEC a high quality of $18.5 million.
Final Judgment in Case of SEC vs. Telegram
The last judgment within the case of the U.S. SEC vs. Telegram Group Inc. and TON Issuer Inc. was filed with the District Court of Southern District of New York on Thursday. District Judge P. Kevin Castel has ordered Telegram Group Inc. to pay a civil penalty of $18,500,000 to the SEC inside 30 days.
Telegram should additionally return 70% of the $1.7 billion raised, particularly the unspent portion of the funds obtained from buyers much less any cash already refunded or that buyers have provided to mortgage the corporate. The courtroom doc states:
Defendants are collectively and severally responsible for disgorgement of $1,224,000,000.
“Today’s proposed settlement reconfirms our dedication to repay the remaining funds to purchasers beneath the acquisition agreements,” Telegram founder Pavel Durov was quoted by Siliconangle as saying. “We’ve already repaid greater than $1.2 billion to the purchasers both instantly or within the type of loans.”
Furthermore, the courtroom order particulars that for the subsequent three years, the defendants and all individuals concerned who acquired the ultimate judgment are required to provide 45 days’ discover to the SEC earlier than taking part “in an issuance of ‘cryptocurrencies,’ ‘digital cash,’ ‘digital tokens,’ or any comparable digital asset issued or transferred utilizing distributed ledger know-how.”
The SEC vs. Telegram case started when the fee obtained a short lived restraining order on Telegram’s token sale in October final yr for allegedly providing unregistered securities. The TON crypto challenge raised about $1.7 billion from buyers in 2018. Telegram fought the SEC in courtroom till a U.S. decide sided with the fee in March and dominated that the gram cryptocurrency couldn’t be distributed each within the U.S. and globally. Telegram subsequently dropped the TON challenge and its attraction in opposition to the ruling. The firm provided to pay buyers again in two methods however U.S. buyers solely have the choice of taking 72% refunds.
This proposed settlement is awaiting courtroom approval. It is supported by each Telegram and the SEC. The courtroom doc could be discovered right here.
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